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Kasbah settles court dispute over failed Asian Mineral takeover


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Kasbah settles court dispute over failed Asian Mineral takeover

Kasbah Resources Ltd. agreed to settle a court dispute with BDO Corporate Finance (WA) Pty Ltd. over a failed takeover by Asian Mineral Resources Ltd.

In the deal announced August 2016, Asian Mineral would fully acquire Kasbah in exchange for 1.3 of Asian Mineral shares or 0.13 CHESS Depositary Interests and 0.4 of an Asian Mineral warrant or 0.04 of a CDI.

The deal valued each Kasbah share at 3.8 Australian cents apiece, a 15.3% premium over its 60-day volume weighted average price. Upon closing, Kasbah shareholders would own 52.5% of Asian Mineral.

But the Federal Court of Australia rejected the deal in December 2016 and ordered Kasbah to pay costs related to an interlocutory hearing requested by objecting shareholders, which saw errors in BDO's independent valuation of Kasbah.

Kasbah then filed a case against BDO for breach of contract, negligence and misleading conduct. Kasbah's board and senior management also underwent an overhaul after the deal collapsed.

In a May 22 release, Kasbah said it settled the dispute with BDO for an undisclosed amount, with no admission of liability from both parties. Terms of the settlement are confidential, it added.

Kasbah is focused on advancing its 75%-owned Achmmach tin project in Morocco that was valued at US$98.1 million by a July 2018 definitive feasibility study.